Balance brought down
A balance brought down is the opening balance of an ongoing ledger account, transferred from the previous period’s closing balance. Assets usually have debit balances; liabilities and equity usually have credit balances, although particular circumstances can produce exceptions. Opening balances allow current-period transactions to be added to the amounts already held or owed.
Worked example
A supplier account closes with $2,400 owed. It opens the next month with a $2,400 credit balance brought down. A payment of $1,000 is debited, leaving $1,400 owed if there are no new purchases or adjustments.
Common mistake
Do not record the opening balance as a new purchase, sale or cash movement. Check the account’s nature rather than assuming every opening balance is a debit.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Direct | July 2027–August 2028 |
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | K1 | Direct | July 2027–August 2028 |
| CIMA | BA3 | Direct | Official assessment-window verification pending |
| FIA | FFA | Direct | September 2026–June 2027 |
Related terms
Also called: balance b/d, opening balance